China Insurance Regulatory Commission： Insurance companies should build three lines of defense and a violation reporting mechanism.

　　CCTV News:According to the website of the China Insurance Regulatory Commission, on October 12, the China Insurance Regulatory Commission publicly solicited opinions on the Measures for the Compliance Management of Insurance Companies (Draft for Comment). The "Exposure Draft" requires that insurance companies should establish a compliance management framework with three lines of defense, and at the same time establish a violation reporting mechanism to ensure that every insurance practitioner has the right and means to report violations.

　　The first line of defense: all departments and business units of an insurance company perform the duties of the first line of defense for compliance management, and are directly and first responsible for compliance management within their responsibilities. The person in charge shall do a good job in compliance management diligently, and part-time compliance personnel shall assist the person in charge in compliance management. All departments of an insurance company shall take the initiative to conduct daily compliance control, conduct regular compliance self-inspection, provide compliance risk information or risk points to the compliance management department or compliance post, and support and cooperate with the compliance risk monitoring and evaluation of the compliance management department or compliance post.

　　The second line of defense, the compliance management department of an insurance company performs the second line of defense duties of compliance management. The compliance management department shall provide compliance support to the business activities of all departments and business units of the company in accordance with the responsibilities specified in Article 15 of these Measures, and organize, coordinate and supervise all departments and business units to carry out compliance management.

　　The third line of defense, the internal audit department of an insurance company performs the duties of the third line of defense for compliance management, and conducts regular independent audits of the company’s compliance management.

　　The "Draft for Comment" proposes that insurance companies should provide sufficient full-time compliance personnel for compliance management departments or compliance posts. The number of full-time compliance personnel of insurance group companies and head offices of insurance companies shall not be less than 3% of the staff of the institutions at the corresponding level. The Exposure Draft requires that insurance companies should establish a compliance assessment index system. Compliance assessment indicators should include at least four aspects: results indicators such as violations; Process indicators such as the construction of compliance risk mechanism; Negative indicators; Other compliance indicators.

　　The compliance weight in the annual assessment indicators of institutions, departments and personnel at all levels of insurance companies is not less than 10%.

　　The "Draft for Comment" proposes that if an insurance company and its related responsible persons violate the provisions of these Measures, the China Insurance Regulatory Commission may take the following regulatory measures: ordering it to make corrections within a time limit; Adjust the classified supervision evaluation; Adjust the corporate governance rating; Regulatory conversation; Industry bulletin; Other regulatory measures. Those who refuse to correct or if the circumstances are serious shall be punished according to law. (CCTV reporter Shi Sining)